Designer Bettina Liano Hangs It Up in Melbourne

Australian fashion designer Bettina Liano has swapped her namesake stores in Melbourne for a new one in New York City.

Speaking to Deal Journal Australia, Ms. Liano, whose garments have been worn by the likes of Kim Kardashian, Courtney Love, Paris Hilton and Elle Macpherson, said that retail rent costs in Australia were “outrageous” compared to the U.S.

“I intend to reopen stores in Australia but when two of my leases in Melbourne ended, it gave me an opportunity to consider opening in North America,” the designer said Thursday.

Ms. Liano said she was paying some US$18,000 a month for her 860-square-foot store on Melbourne’s exclusive Chapel Street, almost triple the US$6,800 she is paying for an 800-square-foot store on Mott Street in Manhattan’s Nolita neighborhood, which opened earlier this month.

“It means I don’t have to sell a lot of stock to breakeven,” said Ms. Liano, whose only remaining Australian store will be one in Sydney’s Strand Arcade where she pays about US$22,000 in rent a month.

A high-net-worth individual has invested US$50,000 to assist with initial set-up costs in New York, and should the venture be successful, further store openings in New York, San Francisco, Los Angeles and Miami may be considered, she revealed.

News Limited

Bettina Liano, with model Emily Jean in her Strand Arcade store in Sydney

Even though the brand is available through boutiques that buy garments through wholesaler-manufacturer Apparel Group, Ms. Liano is planning a significant push in her online sales.

“I can see sales picking up online already. I have a lot of loyal customers who aren’t happy with the Melbourne closures, but thank goodness it is 2013 and they can shop online,” she said.

A pair of the brand’s flagship jeans retail for US$239 including tax, and the price of all garments will be adjusted as currencies fluctuate to ensure customers pay the same price no matter where they are in the world

Ms. Liano said she’d be open to sell her business despite turning down a previous offer from Apparel Group for her namesake brand.